Toby Eccles: Invest in social change

78,912 views ・ 2013-12-02

TED


Please double-click on the English subtitles below to play the video.

00:12
I'm here today to talk about social change,
0
12397
3560
00:15
not a new therapy or a new intervention
1
15957
3283
00:19
or a new way of working with kids or something like that,
2
19240
2717
00:21
but a new business model for social change,
3
21957
2945
00:24
a new way of tackling the problem.
4
24902
2907
00:27
In Britain, 63 percent of all men
5
27809
4174
00:31
who come out of short sentences from prison
6
31983
3063
00:35
re-offend again within a year.
7
35046
2521
00:37
Now how many previous offenses
8
37567
2618
00:40
do you think they have on average
9
40185
2383
00:42
managed to commit?
10
42568
2585
00:45
Forty-three.
11
45153
2148
00:47
And how many previous times do you think they've been in prison?
12
47301
3663
00:50
Seven.
13
50964
1187
00:52
So we went to talk to the Ministry of Justice,
14
52151
2814
00:54
and we said to the Ministry of Justice,
15
54965
1888
00:56
what's it worth to you
16
56853
2352
00:59
if fewer of these guys re-offend?
17
59205
2177
01:01
It's got to be worth something, right?
18
61382
2169
01:03
I mean, there's prison costs,
19
63551
1827
01:05
there's police costs, there's court costs,
20
65378
3528
01:08
all these things that you're spending money on
21
68906
2732
01:11
to deal with these guys. What's it worth?
22
71638
2513
01:14
Now, of course, we care about the social value.
23
74151
2995
01:17
Social Finance, the organization I helped set up,
24
77146
3286
01:20
cares about social stuff.
25
80432
2243
01:22
But we wanted to make the economic case,
26
82675
3042
01:25
because if we could make the economic case,
27
85717
1778
01:27
then the value of doing this would be completely compelling.
28
87495
3021
01:30
And if we can agree on both a value
29
90516
2835
01:33
and a way of measuring whether we've been
30
93351
2337
01:35
successful at reducing that re-offending,
31
95688
2398
01:38
then we can do something
32
98086
1971
01:40
we think rather interesting.
33
100057
2563
01:42
The idea is called the social impact bond.
34
102620
3924
01:46
Now, the social impact bond is simply saying,
35
106544
2377
01:48
if we can get the government to agree,
36
108921
1639
01:50
that we can create a contract where
37
110560
2751
01:53
they only pay if it worked.
38
113311
3459
01:56
So that means that they can try out new stuff
39
116770
3169
01:59
without the embarrassment
40
119939
1463
02:01
of having to pay if it didn't work,
41
121402
2008
02:03
which for still quite a lot of bits of government,
42
123410
1672
02:05
that's a serious issue.
43
125082
1347
02:06
Now, many of you may have noticed
44
126429
1595
02:08
there's a problem at this point,
45
128024
1486
02:09
and that is that it takes a long time to measure
46
129510
2214
02:11
whether those outcomes have happened.
47
131724
2766
02:14
So we have to raise some money.
48
134490
3216
02:17
We use the contract to raise money
49
137706
2447
02:20
from socially motivated investors.
50
140153
2224
02:22
Socially motivated investors:
51
142377
2354
02:24
there's an interesting idea, right?
52
144731
2298
02:27
But actually, there's a lot of people who,
53
147029
2391
02:29
if they're given the chance,
54
149420
1233
02:30
would love to invest in something
55
150653
1882
02:32
that does social good.
56
152535
2763
02:35
And here's the opportunity.
57
155298
1973
02:37
Do you want to also help government find
58
157271
2257
02:39
whether there's a better economic model,
59
159528
2436
02:41
not just leaving these guys to come out of prison
60
161964
2376
02:44
and waiting till they re-offend and putting them back in again,
61
164340
2871
02:47
but actually working with them
62
167211
1557
02:48
to move to a different path
63
168768
1559
02:50
to end up with fewer crimes
64
170327
2599
02:52
and fewer victims?
65
172926
2015
02:54
So we find some investors,
66
174941
2511
02:57
and they pay for a set of services,
67
177452
2370
02:59
and if those services are successful,
68
179822
2265
03:02
then they improve outcomes,
69
182087
2493
03:04
and with those measured reductions in re-offending,
70
184580
2641
03:07
government saves money,
71
187221
1075
03:08
and with those savings,
72
188296
1537
03:09
they can pay outcomes.
73
189833
2454
03:12
And the investors do not just get their money back,
74
192287
2176
03:14
but they make a return.
75
194463
2008
03:16
So in March 2010, we signed
76
196471
2441
03:18
the first social impact bond
77
198912
2020
03:20
with the Ministry of Justice
78
200932
1827
03:22
around Peterborough Prison.
79
202759
2037
03:24
It was to work with 3,000 offenders
80
204796
3024
03:27
split into three cohorts of 1,000 each.
81
207820
2928
03:30
Now, each of those cohorts
82
210748
1989
03:32
would get measured over the two years
83
212737
1831
03:34
that they were coming out of prison.
84
214568
1202
03:35
They've got to have a year to commit their crimes,
85
215770
2055
03:37
six months to get through the court system,
86
217825
2545
03:40
and then they would be compared to a group
87
220370
2395
03:42
taken from the police national computer,
88
222765
2068
03:44
as similar as possible,
89
224833
1827
03:46
and we would get paid
90
226660
1534
03:48
providing we achieved a hurdle rate of 10-percent reduction,
91
228194
2789
03:50
for every conviction event that didn't happen.
92
230983
3558
03:54
So we get paid for crimes saved.
93
234541
3477
03:58
Now if we achieved that 10-percent reduction
94
238018
4104
04:02
across all three cohorts,
95
242122
1685
04:03
then the investors get a seven and a half percent
96
243807
3140
04:06
annualized return on their investment,
97
246947
2143
04:09
and if we do better than that,
98
249090
1540
04:10
they can get up to 13 percent
99
250630
1596
04:12
annualized return on their investment,
100
252226
2533
04:14
which is okay.
101
254759
2118
04:16
So everyone wins here, right?
102
256877
3208
04:20
The Ministry of Justice can try out a new program
103
260085
2715
04:22
and they only pay if it works.
104
262800
2443
04:25
Investors get two opportunities:
105
265243
2412
04:27
for the first time, they can invest in social change.
106
267655
3056
04:30
Also, they make a reasonable return,
107
270711
2031
04:32
and they also know that
108
272742
2173
04:34
first investors in these kinds of things,
109
274915
2272
04:37
they're going to have to believers.
110
277187
1657
04:38
They're going to have to care in the social program,
111
278844
2103
04:40
but if this builds a track record
112
280947
1992
04:42
over five or 10 years,
113
282939
1448
04:44
then you can widen that investor community
114
284387
2064
04:46
as more people have confidence in the product.
115
286451
2456
04:48
The service providers, well, for the first time,
116
288907
2188
04:51
they've got an opportunity to provide services
117
291095
2859
04:53
and grow the evidence for what they're doing
118
293954
2227
04:56
in a really constructive way and learn
119
296181
2560
04:58
and demonstrate the value of what they're doing
120
298741
1822
05:00
over five or six years, not just one or two
121
300563
2019
05:02
as often happens at the moment.
122
302582
1841
05:04
Society wins: fewer crimes, fewer victims.
123
304423
3478
05:07
Now, the offenders, they also benefit.
124
307901
2826
05:10
Instead of just coming out of the prison
125
310727
1430
05:12
with 46 pounds in their pocket,
126
312157
1924
05:14
half of them not knowing where they're spending
127
314081
1499
05:15
their first night out of jail,
128
315580
2138
05:17
actually, someone meets them in prison,
129
317718
2919
05:20
learns about their issues,
130
320637
1864
05:22
meets them at the gate,
131
322501
1919
05:24
takes them through to somewhere to stay,
132
324420
2753
05:27
connects them to benefits, connects them to employment,
133
327173
2418
05:29
drug rehabilitation, mental health,
134
329591
2068
05:31
whatever's needed.
135
331659
1730
05:33
So let's think of another example:
136
333389
2679
05:36
working with children in care.
137
336068
1890
05:37
Social impact bonds work great
138
337958
1624
05:39
for any area where there is at the moment
139
339582
2661
05:42
very expensive provision that produces
140
342243
2399
05:44
poor outcomes for people.
141
344642
1574
05:46
So children in the state care
142
346216
1914
05:48
tend to do very badly.
143
348130
2435
05:50
Only 13 percent achieve a reasonable level
144
350565
3925
05:54
of five GCSEs at 16,
145
354490
2899
05:57
against 58 percent of the wider population.
146
357389
2470
05:59
More troublingly, 27 percent of offenders in prison
147
359859
3659
06:03
have spent some time in care.
148
363518
2041
06:05
And even more worryingly,
149
365559
1292
06:06
and this is a Home Office statistic,
150
366851
1972
06:08
70 percent of prostitutes
151
368823
1900
06:10
have spent some time in care.
152
370723
2184
06:12
The state is not a great parent.
153
372907
3000
06:15
But there are great programs
154
375907
2825
06:18
for adolescents who are on the edge of care,
155
378732
3012
06:21
and 30 percent of kids going into care
156
381744
1876
06:23
are adolescents.
157
383620
1659
06:25
So we set up a program with Essex County Council
158
385279
2840
06:28
to test out intensive family therapeutic support
159
388119
3646
06:31
for those families with adolescents
160
391765
3040
06:34
on the edge of the care system.
161
394805
1571
06:36
Essex only pays in the event
162
396376
2786
06:39
that it's saving them care costs.
163
399162
2782
06:41
Investors have put in 3.1 million pounds.
164
401944
2764
06:44
That program started last month.
165
404708
2258
06:46
Others, around homelessness in London,
166
406966
2324
06:49
around youth and employment and education
167
409290
3880
06:53
elsewhere in the country.
168
413170
1367
06:54
There are now 13 social impact bonds in Britain,
169
414537
3355
06:57
and amazing levels of interest in this idea
170
417892
2475
07:00
all over the world.
171
420367
1523
07:01
So David Cameron's put 20 million pounds
172
421890
2715
07:04
into a social outcomes fund to support this idea.
173
424605
3250
07:07
Obama has suggested 300 million dollars
174
427855
3180
07:11
in the U.S. budget for these kinds of ideas
175
431035
3533
07:14
and structures to move it forward,
176
434568
1686
07:16
and a lot of other countries
177
436254
1491
07:17
are demonstrating considerable interest.
178
437745
2217
07:19
So what's caused this excitement?
179
439962
2056
07:22
Why is this so different for people?
180
442018
2519
07:24
Well, the first piece, which we've talked about,
181
444537
2492
07:27
is innovation.
182
447029
1218
07:28
It enables testing of new ideas
183
448247
3198
07:31
in a way that's less difficult for everybody.
184
451445
3593
07:35
The second piece it brings is rigor.
185
455038
2636
07:37
By working to outcomes, people really have to test
186
457674
3293
07:40
and bring data into the situation that one's dealing with.
187
460967
3869
07:44
So taking Peterborough as an example,
188
464845
2493
07:47
we add case management
189
467338
2223
07:49
across all of the different organizations that we're working with
190
469561
2656
07:52
so they know
191
472217
1285
07:53
what actually has been done with different prisoners,
192
473502
2149
07:55
and at the same time they learn
193
475651
2069
07:57
from the Ministry of Justice, and we learn,
194
477720
2426
08:00
because we pushed for the data,
195
480146
1735
08:01
what actually happens, whether they get re-arrested or not.
196
481881
2207
08:04
And we learn and adapt the program accordingly.
197
484088
3288
08:07
And this leads to the third element, which is new,
198
487376
2937
08:10
and that's flexibility.
199
490313
2102
08:12
Because normal contracting for things,
200
492415
3113
08:15
when you're spending government money,
201
495528
2061
08:17
you're spending our money, tax money,
202
497589
2511
08:20
and the people who are in charge of that are very aware of it
203
500100
2697
08:22
so the temptation is to control exactly how you spend it.
204
502797
3850
08:26
Now any entrepreneur in the room knows
205
506647
3053
08:29
that version 1.0, the business plan,
206
509700
2097
08:31
is not the one that generally works.
207
511797
2847
08:34
So when you're trying to do something like this,
208
514644
2303
08:36
you need the flexibility to adapt the program.
209
516947
2693
08:39
And again, in Peterborough, we started off
210
519640
2712
08:42
with a program, but we also collected data,
211
522352
4157
08:46
and over the period of time,
212
526509
1877
08:48
we nuanced and changed that program
213
528386
2198
08:50
to add a range of other elements,
214
530584
2620
08:53
so that the service adapts
215
533204
1765
08:54
and we meet the needs of the long term
216
534969
2501
08:57
as well as the short term:
217
537470
2064
08:59
greater engagement from the prisoners,
218
539534
3109
09:02
longer-term engagement as well.
219
542643
2779
09:05
The last element is partnership.
220
545422
2536
09:07
There is, at the moment, a stale debate going on very often:
221
547958
3177
09:11
state's better, public sector's better,
222
551135
2125
09:13
private sector's better, social sector's better,
223
553260
3511
09:16
for a lot of these programs.
224
556771
1668
09:18
Actually, for creating social change,
225
558439
1982
09:20
we need to bring in the expertise
226
560421
1739
09:22
from all of those parties
227
562160
1696
09:23
in order to make this work.
228
563856
1588
09:25
And this creates a structure
229
565444
2043
09:27
through which they can combine.
230
567487
1975
09:29
So where does this leave us?
231
569462
1932
09:31
This leaves us with a way
232
571394
1834
09:33
that people can invest in social change.
233
573228
2987
09:36
We've met thousands, possibly millions of people,
234
576215
2987
09:39
who want the opportunity to invest in social change.
235
579202
2433
09:41
We've met champions all over the public sector
236
581635
3089
09:44
keen to make these kinds of differences.
237
584724
2415
09:47
With this kind of model,
238
587139
1785
09:48
we can help bring them together.
239
588924
1936
09:50
Thank you.
240
590860
1962
09:52
(Applause)
241
592822
4200
About this website

This site will introduce you to YouTube videos that are useful for learning English. You will see English lessons taught by top-notch teachers from around the world. Double-click on the English subtitles displayed on each video page to play the video from there. The subtitles scroll in sync with the video playback. If you have any comments or requests, please contact us using this contact form.

https://forms.gle/WvT1wiN1qDtmnspy7